1.

0 Intended Learning Outcomes and Topics

Module 1: Introduction to Government Accounting and the Philippine Budget Process

At the end of the module, the students should be able to:

1. differentiate government accounting from accounting for business entities;

2. explain the basic principles used in government accounting, and
3. explain the four (4) major budget processes.

1.1 General Provisions, Basic Standards and Policies

Definition  (Sec. 109, P.D. 1445)

 Government Accounting encompasses the process of analyzing, recording, classifying, summarizing, and

communicating all transactions involving the receipt and disposition of government funds and property and interpreting
the result thereof.

Objectives of Government Accounting (Sec. 110 P.D. 1445)

 To produce information concerning past operations and present conditions;

 To provide a basis for guidance for future operations;
 To provide for control of the acts of public bodies and offices in the receipt, disposition and utilization of funds and
property; and
 To report on the financial position and the results of operations of government agencies for the information and
guidance of all persons concerned.

Public Sector Accounting Standards Board (PSASB)

 was created by COA in 2008 in order to formulate and implement the Philippine Public Sector Accounting
Standards (PPSAS) and establish linkages with international bodies, professional organizations and academe on
accounting related fields on financial management. 

Philippine Public Sector Accounting Standards (PPSAS)

 are accounting standards based on the International Public Sector Accounting Standards (IPSAS) bases of which
are the IFRS.
 Processes and considerations in the development of the PPSAS :
o applicability of the IPSAS to Philippine setting.
o Philippine application guidance was issued to change the accounting principle of IPSAS found to be in
conflict with Philippine laws, rules, and regulations.
o for improving fair presentation,if significant, disclosure requirements were amended.
o assigned the same number as the IPSAS, but if the PPSAS has no IPSAS equivalent number, a series
starting with 100 will be used and shall be withdrawn if IPSAS issued an equivalent standard.
o relevant accounting standards were researched to deal with financial reporting issues not dealt with IPSAS.
o submission of a draft for consideration of the COA, if the standard was exposed to significant changes and
unresolved

The Government Accounting Manual Volume 1 (GAM 1) contains the Basic Provisions, Basic Standards and Policies.
1.1.1 Responsibility, Accountability and Liability (over  Government Funds and Property)

Responsibility, Accountability and Liability (over  Government Funds and Property)

 Responsibility
o Government resources shall be utilized efficiently end effectively in accordance with the law.
o The head of the government agency shall be directly responsible in implementing this policy and the
resources entrusted to them.
o All those exercising authority over a government agency shall share fiscal responsibility.

 Accountability
o A government officer entrusted with the possession of government resources is responsible for the
safekeeping and therefore should be properly bonded.
o Transfer of funds from one officer to another shall be made after authorization from the COA, which is
properly documented in invoice and receipt.

 Liability
o Unlawful use of government resources shall be the personal liability of the employee found to be directly
responsible.
o Every accountable officer shall be liable for all losses arising from the unlawful use or negligence in
safekeeping of resources.
o No accountable officer shall be relieved from liability merely because he acted under the the direction of a
superior  (unless he informed in writing his superior of the illegality of such transaction, wherein he will be
secondarily liable).
o An accountable officer shall immediately notify the COA  of any loss of government funds due to "force
majeure" within 30 days from its occurrence.

1.1.2 Accounting Responsibility and Responsibility Accounting

Government Offices Charged with Accounting Responsibility

  Commission on Audit (COA)shall:

o keep the general accounts of the government;
o promulgates accounting rules and regulations and
o submits reports to the President and Congress within the time fixed by law.
 Department of Budget and Management (DBM) shall be responsible for the:
o formulation and implementation of the National Budget;
o responsible for the efficient and sound utilization of government funds and revenues and
o validation and assignment of new account codes.
 Bureau of Treasury (BTr)  shall :
o receive and keep the national funds and manage and control the disbursements;
o maintains accounts of all financial transactions of all national government offices/agencies .
 Government Agencies
o responsible in directly implementing the projects of, and performing the functions delegated by the
government.
o required by law to have budget and accounting departments/divisions who shall:
 maintain and keep current the accounting books and budget records reconciled with COA and
DBM
  provide advice on the financial condition and status of the appropriations and allotments of the
agency as its Head may require, and
 develop and conduct procedures designed to meet the needs of management. 

o classified according to  type of governmental organizational unit:

 National Government Agencies (NGAs)
 Local Government Units (LGUs) 
 Government Owned and Controlled Corporations(GOCCs) and its subsidiaries
o shall adopt the PPSAS except for agencies classified as Government Business Entities or GBEs which
shall adopt the IFRS.

Concepts of Responsibility Accounting

 Responsibility accounting involves reporting data on revenues and cost controlled by a manager.
 A responsibility reporting system involves the preparation of a report for each level of responsibility  wherein actual
costs is compared with flexible budget data.
 Evaluation of a manager’s performance is based on matters directly under his control. 

1.1.3 Basic Accounting and Budget Reporting Principles as provided by the GAM

Basic Accounting and Budget Reporting Principles

 GAAP in accordance with the PPSAS and pertinent laws, rules and regulations.
 Accrual basis of accounting
 The Budget basis for the presentation of budget information in the financial statements in accordance with PPSAS
24. (comparison of budget and actual amounts)
 Revised Chart of Accounts prescribed by the Commission on Audit.
 Double-entry bookkeeping
 Financial statements based on accounting and budgetary records.
 Fund cluster accounting - books of accounts and budget records are maintained according to their type of fund.
 Fund cluster -accounting entity for recording expenditures and revenues associated with a specific type of activity.
 General Purpose Financial reporting

1.1.4 The Government Accounting Manual (GAM) for NGAs

I would like to present to you our Bible in Government Accounting .  This is being used as a guide by all government
agencies in accounting for all their transactions. 
he Government Accounting Manual (GAM)

 is prescribed to be used by all national government agencies and local government units.
 shall serve as as a guide in the:


o preparation of the general purpose financial statements in accordance with the PPSAS and other financial
reports
o reporting of budget, revenue, and expenditure  in accordance with the PPSAS
 aims to update the :
o standards, policies, guidelines, and procedures in accounting for government funds and property
o coding structure and accounts
o accounting books, registries, records, forms, reports, and financial statements
Legal Basis

 Article IX-D, Sec 2 par (2), 1987 Philippine Constitution

 Mandates COA to promulgate Accounting rules and regulations

CONCEPTS OF GAM

Volume 1 Volume 2 Volume 3

22 chapters, 19 annexes, acronyms 92 Appendices 3 chapters
Accounting standards and policies Books, registries, records. Forms, and List of accounts
reports Codes and descriptions of accounts
-Accounting
-Budget
-Treasury
-Property/Supply Management
Guidelines and procedures Instructions: How to accomplish forms,
-Accounting records, etc.
-Budget -When, where to submit
-Treasury
-Property/Supply Management
Illustrative Accounting Entries
Sample Formats of the FS

1.2 The Philippine Budget Process

Government Budgeting

 refers to methods and practices of government planning, adopting and executing financial policies and programs.
Government Budget

 refers to a plan for financing government activities for a fiscal year,

 it is a definite proposal of estimates of receipts and expenditures.

Budgetary Approaches

 Bottom-Up Budgeting Approach 

 Incremental Budgeting Approach 

 Zero-based budgeting Approach

 Performance-Informed Budgeting

Budgetary Approaches

Budgetary Approaches

 Bottom -Up Budgeting Approach -several parties participates in the preparation of the budget, starting from the
lowest  to the highest level of the Government.  This is the opposite of " top-down" budgeting wherein the budget
preparation starts from the agency heads.

 Incremental Budgeting Approach -current year budget is based on previous year’s budget, which is just adjusted for
any variances experienced in the past. It also called the "roll over " approach and this is prone to abuse.

 Zero-based budgeting Approach-the current year' budget is formulated without regard to the previous year’s
budget. Government agencies are required to justify their current years programs and expenditures. This is a "back -to-
zero" or "clean slate" approach. It promotes efficient and effective utilization of funds.

 Performance-Informed Budgeting- uses performance information to deciding where the funds will go.

Types of Budgets

 Special budget
 Annual budget
 Line Item budget
 Performance Budget
 Obligations budget

Types of Budgets and Budgetary Terms

Types of Budgets and Budgetary Accounts

 Supplemental budget - supplements or adjust the previous budget which is deemed inadequate for its intended
purpose.
 Annual budget- covers a period of one year and forms the basis for the annual appropriation.
 Special budget - provides for items not adequately covered or not included in the GAA.
 Line Item budget - focuses on specific expenditures such as salaries and wages, travel expenses, freight, materials,
supplies and equipment.
 Performance Budget- a plan of activities to be undertaken including their related costs, with the emphasis  on
meeting targets and desired results. The main focus in on the work to be done or services to be rendered.
 Obligations budget-focuses on expenditures in incurred in the current year which are to be paid either in the same
year or in the following year.

 
 Budgetary Accounts

 Appropriation - authorization by a legislative body to allocate funds for a specified purpose

 Allotment- authorization to agencies to incur obligations or the "obligational authority"
 Obligation - amount contracted by an authorized officer for which the government is liable.
 Disbursements- actual  amount paid out of the budgeted amount.

Kinds of Appropriations

 New General Appropriations - authorization made by a legislative body to allocate funds for purposes specified by a
legislative body or similar authority.
 Continuing Appropriations- authorizations to support the incurrence of obligations beyond the budget year (e.g.,
multi-year construction projects). 

 Supplemental Appropriations-additional appropriations to augment the original appropriations which proved to be

insufficient.

 Automatic Appropriations-authorizations programmed annually which do not require periodic action by Congress.

 Unprogrammed Funds-standby appropriations which may be availed only upon the occurrence of certain
instances. 
 Retained Income Funds-collections which the agencies can use directly in their operations
 Revolving Funds -receipts from business-type activities of agencies which are authorized to be constituted as such.
These are self-liquidating and all obligations and expenditures incurred by virtue of said business-type activity shall be
charged against the fund.
 Trust Receipts- receipts by a government agency acting as an agent.

1.2.1 The Philippine Budget Process and the National Budget 

National Budget (Government Budget)

 is the government's estimate of the sources and uses of government funds within a fiscal year.
 is the basis for expenditures and is the government's key instrument for implementing its socio-economic
objectives.
 The Bottom-Up Budget approach is used by the Philippine Government in preparing its budget. Several parties
participate in the preparation of the budget, starting from the lowest to the highest level of the Government and even the
ordinary citizens.
 In 2011, The  Philippine Government adopted the"Zero-based budgeting" approach. The current year's budget is
formulated without regard to the previous year’s budget.
Budget Preparation

Budget Preparation

 This is where the estimates for revenues and expenditures are prepared
 The main agency involved is the Development Budget Coordination Committee (DBCC) composed of the following
economic agencies:
o DBM
o Dept. of Finance
o NEDA
o BSP
 and the Office of the President for oversight
 It starts with the "Budget Call" for all government agencies which contains the budget parameters.
 Each agency is required to submit its detailed budget proposals in the Technical Budget Hearings
 After consolidation, it is presented to the President and Cabinet members for further refinement and prioritization.
 The DBCC  prepares the finalized budget proposal and submits the same to the President and cabinet members for
approval.
 The President submits the budget to Congress for approval.

Budget Legislation

Budget Legislation

 The President submits the annual budget proposal to Congress.

 It starts with the enactment of the Bill. Congress assigns the General Appropriation Bill (GAB) to the Committee on
Appropriations (CA) .
 Proposed budget is reviewed by the CA. Each agency is summoned to justify their budgets.
 The CA presents to the house body the proposed budget. It passes through (3) readings.
 The Congress submits it to the Senate Finance Committee (SFC) for hearings and deliberation.
 The SFC submits amendments to the GAB to the Senate for approval.
 The Bicameral Committee composed of both houses convene to resolve the differences.
 The common version is submitted to the President, for " line item veto power ".
 The President signs it to the Law " The General Appropriations Act (GAA).
Budget Execution

Budget Execution

 This is the implementation of the GAA.

 This contains the agencies targets and plans for the financial year.
 Allotments are issued, chargeable against the regular agency budget by the DBM.
 Agencies may submit request for availment from special purpose funds.
 Agencies are mandated to submit based on the National Expenditure Program (NEP), the  Budget Execution
Documents (BEDs)
 Cash releases are made to agencies to cover obligations that are current or carried forward from the previous year
by the Bu. of Treasury (BTr) through the Budget Disbursement Authorizations (BDAs).

Budget Execution Documents and Authority

 
Budget Execution Documents (BEDs)

 These are reports used in the releasing of allotments to government agencies.

General Appropriations Act Release Document (GAARD)

 serves as obligational authority for the comprehensive release of budgetary items appropriated in the GAA
categorized as " For Comprehensive Release".

Special Allotment Release Order (SARO)

 covers budgetary items under "For Later Release" subject to compliance of required documents or clearance. Ex.
Calamity Fund

General Allotment Release Order (GARO)

 comprehensive authority issued to all national government agencies, in general, to incur obligations not exceeding
an authorized amount for a certain purpose during a specified period. It covers expenditures common to most agencies
without need of special clearance. Ex. Retirement and Life Insurance Fund

Budget Disbursement Authority's (BDAs)

 These are documents needed for government agencies to have access to the government funds.

Notice of Cash Allocation (NCA)

 authority issued by the DBM to central, regional and provincial offices and operating units to cover their cash
requirements.
 The NCA specifies the maximum amount of cash that can be withdrawn from the government servicing bank (GSB)
in a certain period. This is based on the agency's Monthly Cash Program (MRP).

Notice of Transfer of Allocation (NTA)

 authority issued by an agency's Central Office (CO)to its regional operating units (ROU) to cover the latter’s cash
requirements.

Non-Cash Availment Authority (NCAA)

 authority issued by the DBM to agencies to cover  the liquidation of their actual obligations incurred against
available allotments for availment of proceeds from loan/ grants through supplier's credit/ constructive cash.

Cash Disbursement Ceiling (CDC)

 authority issued by the DBM to agencies with foreign operations like the DFA allowing them to use income collected
by their foreign service post to cover their operating requirements.

Note:
         Disbursements are most commonly made through checks that are chargeable against the account of the Bureau of
Treasury under the scheme called "Modified Disbursement System (MDS) Checks". There are also other modes of
disbursement available that we will discuss later.

Budget Accountability

Budget Accountability

 Agencies report their their actual physical and financial performance through the submission of Budget Financial
Accountability Reports (BFARs).
 The Commission on Audit (COA) is in charge of assessing agency performance.
 Those that are excessive , inappropriate or illegal are not passed in audit.
 COA recommends means for setting them right if such is still possible.
 Financial Statement of agencies are submitted to DBM and COA on a quarterly and annual basis which shows how
these agencies used up their allotments or cash allocations.

BFARs

Budget and Financial Accountability Reports (BFARs)

These are reports submitted by the government agencies to DBM and COA to monitor the conformance of actual results
with the planned targets.
 
Monthly Report of Disbursements (MRD)

 shows the disbursements of the entity during the month, classified according to type of disbursement authority.
 This report is submitted  30 days after the end of each month.

Quarterly Physical Report of Operation (QPRO)

 shows the agency's physical accomplishments in a given quarter vs its physical targets.
 This report is submitted within 30 days after the end of each quarter.

Statement of Appropriations, Allotments, Obligation, Disbursements, and Balances (SAAODB)

 shows the agency's authorized appropriations, allotments received, obligations incurred, disbursements made, the
balance of unreleased appropriations, unobligated allotments, and unpaid obligations.
 This report is submitted within 30 days after the end of each quarter.

Summary of Appropriations, Allotments, Obligation, Disbursements, and Balances by Object of Expenditure (SAAODBOE)

 shows the agency's authorized appropriations, allotments received, obligations incurred, disbursements made, the
balance of unreleased appropriations, unobligated allotments and unpaid obligations with details of expenditures.
 This report is submitted within 30 days after the end of each quarter 

List of Allotments  and Sub-Allotments(LASA)

 shows the allotments received by the agency from DBM and the sub-allotments issued by the agency's CO or RO
to lower operating units.
 This report is submitted within 30 days after the end of each quarter.

Statement of Approve Budgets, Utilizations, Disbursements, and Balances (SABUDB)

 this report is prepared by agencies that have the authority to use their revenues. It shows the Budgeted revenue,
the utilizations and disbursements, and the unutilized amounts
 This report is submitted within 30 days after the end of each quarter.

Summary of Approved Budgets, Utilizations, Disbursements, and Balances (SABUDBOE)

 this report is prepared by agencies that have the authority to use their revenues. It shows the Budgeted revenue,
the utilizations and disbursements, and the unutilized amounts.
 This report is submitted within 30 days after the end of each quarter.

Quarterly Report of Revenue and Other Receipts (QRROR)

 shows the actual revenues and other receipts remitted to the Bu. of Treasury (BTr) and deposited in authorized
government depository banks in a given quarter.
 This report is submitted within 30 days after the end of each quarter.

Aging of Due and Demandable Obligations (ADDO)

 shows the name of creditors, amounts owed, and the no. of days these amounts are outstanding.
 This report is submitted within 30 days after the end of each year. 

Consolidated Statement of Allotments, Obligations, and Balances per Summary of Appropriations (CSAOBSA)

 this report is based on SAAODB and SAAODBOE.

 This report is submitted on or before February 14 of the following year.

The DBM and COA perform periodic reviews of the agency's performance and budget accountability and report this to the
President. In case of non-submission of the reports on time, the units concerned will be penalized by DBM by withholding
their salaries.
 These documents are also the basis of the COA in auditing government agencies. These budgetary reports and other
budgetary records provide information in preparing the agency's Statement of Comparison of Budget and Actual Amounts
which is one of the components of a complete set of Financial Statements.
Strategic  Performance Management System 
  a system that aims to align what the individual employee does with the goals and objectives of
the organization, making sure that everyone contributes to its overall success.
o it calls for regular monitoring and evaluation of employee performance, not only at the end of a
rating period, so that appropriate steps can be taken to keep a program or project on track.

o Individual Performance Commitment and Review (IPCR) Form

 a performance contract between the employee and management where targeted outputs
for the specific rating period are clearly spelled out, including the performance standards which
serve as the basis for evaluating each output.
 criteria: quantity, quality, and time.

 Part of the employee’s evaluation is the assessment of his/her competencies vis-à-vis the
competency requirements of the job.
o When a competency gap is found, this may be addressed through appropriate learning and
development interventions that enable the employee to pursue career advancement.

 The results of the performance evaluation may also serve as an objective basis for the grant of
rewards and benefits, making it more purposive than arbitrary.

o The CSC has required the adoption of the SPMS in all government agencies since 2012, with
legal basis on Congress’ Joint Resolution No. 4, also known as Salary Standardization Law 3, which
states, “A performance-based incentive scheme which integrates personnel and organizational
performance shall be established to reward exemplary civil servants and well-performing institutions.” 

Strategic Performance Management System

The Strategic Performance Management System (SPMS) is a mechanism that links employee performance with organizational
performance to enhance the performance orientation of the compensation system. It ensures that the employee achieves the
objectives set by the organization and the organization, on the other hand, achieves the objectives that it has set as its strategic
plan.

The SPMS Objectives are: (a) to concretize the linkage of organizational performance with the Philippine Development Plan,
Agency Strategic Plan, and Organizational Performance Indicator Framework OPIF; (b) to ensure organizational and individual
effectiveness by cascading institutional accountabilities to the various levels of the organization; and (c) to link performance
management with other HR systems.

The SPMS has the following basic elements:

a. Goals that are aligned to agency mandate and organizational priorities
b. System that is outputs/outcomes-oriented
c. A team approach to performance management
d. Forms that are user-friendly and shows alignment of individual and organizational goals
e. Information systems that support monitoring and evaluation
f. A Communication plan

More importantly, the SPMS complements the Results-Based Performance Management System that is implemented by the
Office of the President and that links organizational performance to societal goals. It is also linked to the Performance-Based
Incentive System (PBIS) that consists of the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus
(PBB).

 
The SPMS Process

The SPMS follows a four-stage cycle, consisting of the following:

1. Performance planning and commitment

During this stage, success indicators are determined. Success indicators are performance level yardsticks consisting of
performance measures and performance targets. These shall serve as bases in the office’s and individual employee’s preparation
of their performance contract and rating form.

2. Performance monitoring and coaching

The performance of the office and every individual shall be regularly monitored at various levels. Monitoring and evaluation
mechanisms ensure that timely and appropriate steps can be taken to keep a program on track, and that its objectives or goals
are met in the most effective manner.

Managers and supervisors act as coaches and mentors to provide an enabling environment/intervention to improve team
performance, and to manage and develop individual potentials.

3. Performance review and evaluation

This phase aims to assess both office’s and individual employee’s performance level based on performance targets and
measures as approved in the office and individual performance commitment contracts.

Part of the individual employee’s evaluation is the competency assessment vis-à-vis the competency requirements of the job.
The assessment shall focus on the strengths, competency-related performance gaps and the opportunities to address these gaps,
career paths, and alternatives.

4. Performance rewarding and development planning

The results of the performance evaluation/assessment shall serve as inputs for the agency’s HR Plan, which includes
identification and provision of developmental interventions, and conferment of rewards and incentives.

SPMS Rating Scale

The SPMS uses a five-point rating scale, described as follows:

Rating      

Numerical     Adjectival     Description

Performance represents an extraordinary level of achievement and

commitment in terms of quality and time, technical skills and knowledge,
ingenuity, creativity, and initiative. Employees at this performance level should
5     Outstanding    
have demonstrated exceptional job mastery in all major areas of responsibility.
Employee achievement and contributions to the organization are of marked
excellence.

Very Performance exceeded expectations. All goals, objectives, and targets were
4        
Satisfactory achieved above the established standards.

Performance met expectations in terms of quality of work, efficiency, and

3     Satisfactory    
timeliness. The most critical annual goals were met.
 Performance failed to meet expectations, and/or one or more of the most
2     Unsatisfactory    
critical goals were not met.

Performance was consistently below expectations, and/or reasonable progress

1     Poor     toward critical goals was not made. Significant improvement is needed in one
or more important areas.

LICENSED PROFESSIONALS GET CIVIL SERVICE ELIGIBILITY

Published: 11 March 2021

Passers of bar and licensure board examinations are automatically considered civil service eligibles,
the Civil Service Commission (CSC) said.

Republic Act No. 1080, as amended, declares that “the bar examinations and the examinations given
by the various boards of examiners of the Government are declared as civil service examinations”.

Thus, pursuant to the said law, passers of the bar examination conducted by the Supreme Court (SC)
and licensure board examinations conducted by the Professional Regulation Commission (PRC) are
automatically considered as civil service eligibles.

Since 2014, this now includes marine deck and engine officers licensed by the Maritime Industry
Authority (MARINA), as the examination, licensing, and certification system for said positions was
transferred from the PRC to MARINA by virtue of Republic Act No. 10635.

Likewise, passing the Shari’a Bar Examinations shall also be considered as eligibility.

Passers of the said examinations no longer have to file an application for the grant of civil service
eligibility with the CSC.

Appropriateness

The Bar/Board Eligibility is appropriate and required for appointment to government positions the
duties of which constitute the practice of profession. This means that appointees to positions such as
Attorney, Nurse, or Accountant in government are required to have the appropriate professional
license.

Licensed professionals may also work in the government, even not in the practice of their profession.

For the Bar/Board Eligibility resulting from passing an examination requiring completion of a

bachelor’s degree, such eligibility shall be considered appropriate for appointment to positions for
which the examination was given, as well as to other first and second level positions in
government that are not covered by special laws nor require other special eligibilities or licenses.

On the other hand, for the Bar/Board Eligibility resulting from passing an examination requiring less
than four years of college studies, such eligibility shall be considered appropriate for appointment
to positions for which the examination was given, as well as to other first level positions in
government that are not covered by special laws nor require other special eligibilities or licenses.
Eligibility resulting from the 13th Shari’a Bar Examinations held in January 2014 shall also be
considered an eligibility appropriate for appointment to first and second level positions. Passing the
Shari’a Bar Examinations held prior to the 13th Shari’a Bar Examinations shall be considered as
appropriate for appointment to first level positions.

Per the CSC’s 2017 Omnibus Rules on Appointments and Other Human Resource Actions, as
amended, holders of Bar/Board Eligibility shall be exempt from the master’s degree requirement for
division chief and executive/managerial positions in the second level, the duties and responsibilities of
which involve practice of profession or belong to the same occupational group or functionally related
positions as those regulated by bar or board laws.

Moreover, lawyers and doctors, specifically, are considered exempt from the master’s degree
requirement for division chief or executive/managerial positions that do not involve the practice of
profession or belong to the same occupational group or functionally related positions as those
regulated by bar or board laws.

Licensed professionals need not go to the CSC to obtain a copy of civil service eligibility. A valid
professional license or copy of the Certificate of Registration/Competency or Report of Rating, as
applicable, that was issued by SC, PRC, or MARINA may be used as proof of eligibility.

However, the CSC stressed that eligibility is just one of the qualifications for appointment. Appointees
to career service positions must meet the education, training, experience, eligibility, and competency
requirements prescribed in the Qualification Standards.

 Republic Act No. 1080 (amended)

 the bar examinations and the examinations given by the various boards of examiners of the
Government are declared as civil service examinations.
 Thus, pursuant to the said law, passers of the following examinations are automatically considered
as civil service eligibles.
o bar examination conducted by the Supreme Court (SC) and
o licensure board examinations conducted by the Professional Regulation Commission (PRC) 
o Since 2014, this now includes marine deck and engine officers licensed by the Maritime Industry
Authority (MARINA), as the examination, licensing, and certification system for said positions was
transferred from the PRC to MARINA by virtue of Republic Act No. 10635. Likewise, passing the
Shari’a Bar

Category Definition
Effectiveness/Quality The extent to which actual performance compares
with targeted performance
The degree to which objectives are achieved and the
extent to which targeted problems are solved
In management, effectiveness relates to getting the
right things done
Efficiency The extent to which time or resources is used for the
intended task or purpose. Measures whether targets
are accomplished with a minimum amount or quantity
of waste, expense, or unnecessary effort
Timeliness Measures whether the deliverable was done on time
based on the requirements of the law and/ or clients/
stakeholders.
Time- related performance indicators evaluate such
things as project completion deadlines, time
 management skills and other time – sensitive
expectations

SPMS RATING SCALE

PPT

Typical Budget/Accounting Set-up in Government Agencies

OVP CONTROLLER

Vice President
Finance

Budget Accounting Accounting Accounting

Department Department Social Department Department Gen.
insurance Housing/Loans Insurance

Manager
Social Insurance Accounting
Department

Division ChiefFinancial Division Chief Premium Division Chief

Analysis and Reporting Billing & Collection Retirement Claims
Staff (FARS)(Accountant
IV)

Division Chief Social

Insurance Loans
Accounting

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PHILIPPINE GOVERNMENT STRUCTURE

◼ Executive

❖ Office of the President

❖ Office of the Vice-President

❖ Office of the Cabinet Secretaries

❑ Legislative

❖ Congress

❖ Senate

❑ Judiciary

❖ Supreme Court

❖ Court of Appeals

❖ Regional Trial Courts

❖ Municipal Trial Courts

❖ Metropolitan Trial Courts

❖ Circuit Courts

❖ Court of Tax Appeals

❖ Sandigan Bayan

❖ Ombudsman

❑ Military

❖ PNP

❖ AFP

➢ Air Force
 ➢ Army

➢ Navy

❑ Local Government Offices

❖ Provincial Government

❖ City Government

❖ Municipal Government

❑ National Offices

❖ Departments

❖ Bureaus

❖ Commissions

❑ Government Owned and Controlled Corporations

❖ GSIS/SSS

❖ HDMF

❖ Philhealth

❖ LBP/DBP

❖ BCDA

ECONOMIC ENTITIES RELEVANT TO THE GOVERNMENT ECONOMIC PROCESS

Three (3) Types of Governmental

Organizational Units

❑ National Government Agencies (NGA’s)

Agencies that includes all Departments, Bureaus, Offices, Boards, Commissions, Councils, State
Colleges and Universities

❑ Local Government Units (LGU’s)

- Political subdivisions of the Philippines having substantial control over the local affairs, consisting of :

❖ provinces,

❖ cities,

❖ municipalities and

❖ barangays.
❑ Government Owned and Controlled Corporations. (GOCC’s)

➢ Agencies organized by law or pursuant to law ,

➢ vested with functions relating to the public needs whether government or proprietary in nature,

➢ owned by the government directly or through its instrumentalities either wholly or, where applicable as in case of stock

corporation, to the extent of at least 51 % of its Capital stock.

◼ The Philippine Government will not be able to function properly, unless it has funds to work on which is called a National
Budget.

Government Fund - a sum of money or other resources set aside for the purpose of carrying out specific activities in
accordance with specific regulations, restrictions and limitations.

Major Classification of Funds (as to Purpose)

❑ General Fund - One which is generally available for all functions of the government

❑ Special Fund - One which is by legislative action, segregates specified revenues for limited purposes.

Sources of Funds of the Government

A. Public Revenues

1. Tax Sources

❖ Income Tax

❖ Real Property Tax

❖ Taxes on domestic goods or services

❖ Taxes on International trade trans.

❖ Other tax sources

2. Non-Tax Sources

❖ Fines

❖ Penalties

❖ Collection of the government for Services rendered

B. Borrowings

❖ Domestic – auction of Treasury Bills, and Treasury Bonds to the public

❖ Foreign – funds obtained from other countries

C. Withdrawal from the available Cash Balance of the Government (Bureau of Treasury)
PURPOSE OF GOVERNMENT FUNDS

◼ To finance the various expenditures of the government to attain its’ socioeconomic objectives.

❑ To finance the operations of government offices

CLASSIFICATION OF GOVERNMENT EXPENDITURE

A. By Sector (SEDGD)

❖ Social Services expenditure

❖ Economic Services expenditure

❖ Defense Expenditure

❖ General Public Services

❖ Debt Burden

B. By Cost Structure (GaSoOraP)

C. By Expense Class (COE/CO)

D. By Major Recipient of Gov’t. (NLG)

E. By Regional Allocation (VRC)

F. By Type of Appropriation (GSCA)

National Budget (Government Budget)

◼ a plan to finance all government activities for a fiscal year.

◼ a definitive proposal of all revenues and expenditure for the past and ensuing year.

3 E’s in Measuring Performance of Government Entities

◼ ECONOMICAL

- Being able to perform functions and tasks using the least amount of resources within a specified time frame.

◼ EFFICIENT

- Doing the right things given the available resources and within the specified time frames

- Performing above standards as to quantity, quality and time

◼ EFFECTIVE

- Doing things right based on the agencies, mandate and function.

- performing up to standards
USERS OF GOVERNMENT ACCOUNTING

◼ General Public

◼ Governing Oversight Committee

- President

- Cabinet

- COA

- Legislative bodies

◼ Managers/Administration of Government Entities

◼ Students of Business

◼ Resource providers of the Government

-Donors

-Grantors

-Lenders/Suppliers